Physiomics Regulatory News (PYC)

Physiomics plc

("Physiomics") or ("the Company")

Disclosure of Large Pharma partner Merck & Co.

Physiomics plc (AIM: PYC), the Oxford, UK based systems biology company, is delighted to announce that Merck & Co., a top 5 pharmaceutical company, has disclosed that it is a customer of Physiomics. Merck & Co. published a paper in CPT: Pharmacometrics and Systems Biology (part of Nature Group) in which Virtual Tumour was specified as a technology which had helped their decision-making process.

The paper can be accessed at:

http://www.nature.com/psp/journal/v3/n10/full/psp201440a.html

Dr Mark Chadwick, CEO of Physiomics, commented:

"We are extremely pleased to be able to reveal the name of one of our large pharma customers. Typically, customer names are not disclosed for individual collaboration announcements due to confidentiality concerns. This publication is the result of a number of successful projects which have built trust between Physiomics and Merck & Co. We look forward to continuing this relationship in future."

Enquiries:

Physiomics plc

Dr Mark Chadwick, CEO

+44 (0)1865 784 980

WH Ireland Limited (broker/nomad)

Katy Mitchell

+44 (0) 161 832 2174

About Physiomics plc

Physiomics (AIM:PYC) is a computational systems biology services company applying simulations of cell behaviour to drug development to reduce the high attrition rates of clinical trials. 80-90 per cent of all clinical drug candidates fail to reach the market and estimates show that an overall ten per cent improvement in success rates could reduce the cost of one drug's development by as much as $242 million, from the current estimate of around $800 million1.

Physiomics develops computational systems biology models to predict and understand cancer drug efficacy from pre-clinical research to clinical development. Physiomics has created detailed mathematical models incorporating the most important molecular events taking place during the human cell cycle and apoptosis processes. The company's SystemCell® technology enables the simulation of populations of "virtual cells". The company has also developed a "Virtual Tumour" model to simulate the effect of anti-cancer drugs on tumour growth. The models are used to optimise compound design and to design drug schedules and combination therapies.

Physiomics, based in Oxford, UK, was founded in 2001, and floated on AIM in 2004. For further information, please visit www.physiomics-plc.com

SystemCell® is a registered trademark of Physiomics plc

1Tufts Centre Impact Report 2002